In exchange for the reserve asset portion of its quota payment, an IMF member acquires a liquid claim on the IMF—much like a demand deposit in a commercial bank. This claim is called the member’s Reserve Tranche Position, and it is equal to the member’s quota minus the IMF’s holdings of the member’s currency (excluding currency holdings that stem from the member’s own use of credit). The reserve tranche position is part of the member country’s external reserves.